The UK's position (AIUI) was that membership of the European Economic Area means that Iceland can not treat its own citizens' savings differently than those of other EEA member states' citizens. Hence the whole squabbling about repayment and such, which is still ongoing.
Yes, UK's position ;) But I guess UK's position is based on interests of affected UK citizens, and doesn't have to be valid. I guess there are different ways to read these EEA treaties and regulations than what UK and Netherlands says, otherwise Iceland would be kicked out long ago for non-compliance.
The UK's position (AIUI) was that membership of the European Economic Area means that Iceland can not treat its own citizens' savings differently than those of other EEA member states' citizens. Hence the whole squabbling about repayment and such, which is still ongoing.